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How would you use the balance scorecard approach to measure your performance in school? ULIUW. Additional multiple choice problems y education.com by accessing the Student Practice Portal Which of the following statements concerning the taxation of assets is cor a. Ordinary income may qualify for a special 0% rate. b. Capital gains are always taxed at the taxpayers marginal tax rate c. Gains on Section 1231 assets are taxed at ordinary rates, and lo assets are taxed at ordinary rates, and losses are taxed at capital rates. d. Gains on Section 1231 assets are ta sets are taxed at long-term capital gains tax rates, and losses are taxed at ordinary income tax rates. on of assets is correct? Which of the following statements correctly identifies when income is subject to tax? Capital gains must be realized before they can be recognized on a tax return. b. Realization occurs when the gain on an asset is reflected on the taxpayer's return. C. As a general rule, realized gains are not recognized unless a provision in the IRC requires recognition. d. Recognition occurs when an asset has been sold or exchanged. 3. All of the following are included in the amount realized upon disposition of an asset EXCEPT: a. The cash received. b. The fair market value of property received in the exchange. C. A transfer of obligation to pay debt from the seller to the buyer. d. The taxpayer's adjusted basis. Christopher purchased a home in Connecticut three years ago for $300,000. He had been working in connecticut for the past 10 years. Yesterday, his employer decided to transfer him to the San Diego, wallornia branch, effective next month. Unfortunately, the real estate market has weakened over past few years, and Christopher is only able to sell his home for $270,000. Which of the ving statements correctly identifies his tax consequences of the sale: Christopher is not permitted to deduct the loss on his income tax return. ristopher's loss will be reflected as a long-term capital loss on his tax return. stopher's loss will be reflected as a short-term capital loss on his tax return. ristopher will recognize an ordinary loss of $30,000. b. Christopher's loss Harold purchased a home traployer to an office located sidence, but if he sold the home toda weto a weak real estate market. 1 Wome to a tenant. What is Haro 2. $260,000. b. $270,000. c. $300,000 4. $320,000 nome for $300,000 three years ago, and was recently transferred by his cated across the country. He made $20,000 of improvements to the ome today, he would only be able to receive $260,000 for the house ket. Instead of selling the home and realizing a loss, Harold rents the tis Harold's basis for depreciation purposes? THIS is provided below. Additional multiple choice problems y education.com by accessing the Student Practice Portal 1. Which of the following states atements concerning the taxation of assets is correct? a. Ordinary income may qualify for a special 0% rate. b. Capital gains are always taxed at the taxpayers marginal tax rate c. Gains on Section 1231 assets are taxed at ordinary rates, and losses are rates. d. Gains on Section 1231 assets are taxed at long-term capital gains tax rates, taxed at ordinary income tax rates. tlong-term capital gains tax rates, and losses are Which of the following statements correctly identifies when income is subiect to the Capital gains must be realized before they can be reconized on a time Realization occurs when the gain on an asset is reflected on the taxpayers As a general rule, realized gains are not recognized unless a provision in the kit recognition d. Recognition occurs when an asset has been sold or exchanged. All of the following are included in the amount realized upon disposition of an asset EXCEPT a. The cash received. b. The fair market value of property received in the exchange. c. A transfer of obligation to pay debt from the seller to the buyer. d. The taxpayer's adjusted basis. 4. Christopher purchased a home in Connecticut three years ago for $300,000. He had been working in Connecticut for the past 10 years. Yesterday, his employer decided to transfer him to the San Diego, California branch, effective next month. Unfortunately, the real estate market has weakened over the past few years, and Christopher is only able to sell his home for $270,000. Which of the following statements correctly identifies his tax consequences of the sale: a. Christopher is not permitted to deduct the loss on his income tax return. b. Christopher's loss will be reflected as a long-term capital loss on his tax return. C. Christopher's loss will be reflected as a short-term capital loss on his tax return. d. Christopher will recognize an ordinary loss of $30,000. 3. Harold purchased a home for $300,000 three years ago, and was recently transferred by his employer to an office located across the country. He made $20,000 of improvements to the residence, but if he sold the home today, he would only be able to receive $260,000 for the house e to a weak real estate market. Instead of selling the home and realizing a loss, Harold rents the ome to a tenant. What is Harold's basis for depreciation purposes a. $260,000. b. $270,000. c. $300,000. d. $320,000. Multiple Choice Problems 475

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